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Government stealth tax costs council thousands

Catherine Deshayes

Swindon Council has had to demolish buildings due to a Government stealth tax on empty shops, offices and warehouses

Much maligned by David Brent in The Office, Swindon is suffering another disappointment as many of the buildings in the town are being forcibly demolished.

Hundreds of thousands of pounds are being charged to the council in ‘empty rates', while local businesses with empty property are also being hit hard, forcing the closure of many buildings.

One of many sites currently being demolished in Swindon is a 14-acre site at North Star Avenue, Swindon, which employed nearly 500 people.

From April this year business rate relief on empty property was cut, with the Government claiming it would reduce rents and increase property supply.

While the British Property Federation (BPF), trade body for the property industry, has been campaigning nationally for the relief to be reapplied, many local businesses may face bankruptcy as a result.

Council owned premises have had to pay the tax as well, in a move universally condemned by the BPF,the British Chamber of Commerce and a growing backbench rebellion of MPs.

It's not all doom and gloom for Swindon though, as plans are afoot to totally regenerate the city in projects being led by the New Swindon Company, which is part-funded by the council.

Nick Martin, lead member for finance at Swindon Borough Council, said, "We are spending public money demolishing buildings to avoid this ill-thought out stealth tax.

"Gordon Brown should be ashamed of making people whose properties are empty pay even more tax, thus making a bad situation even worse," Mr Martin added.